Non-residents › Sampo Pank in Estonia – sound financial results reflect balanced growth
Sampo Pank in Estonia – sound financial results reflect balanced growth
30.10.2007
- Net profit for the eight-month period beginning on February 1 and ending on September 30, 2007, amounted to EEK316m, up 46% from EEK217m in the corresponding eight-month period of 2006
- Operating income stood at EEK711m, up 45% from EEK489m
- Operating expenses totalled EEK339m, up 32% from EEK256 m
- Cost/income ratio improved to 47.7% from 52.4%
- ROE was 37.2%, up from 32.1%
- Customer deposits totalled EEK15.8bn, up 39%
- The loan and lease portfolio amounted to EEK26.6bn, up 66%
- Customer base totalled 160,000 at the end of September, up 14%
- Online customers numbered 149,000, up 20%. Online customers account for 93% of the total customer base
| BANKING ACTIVITIES ESTONIA | Q1-Q3 | Q1-Q3 | Index | Full year |
| (EEK m) | 2007 | 2006 | 07/06 | 2006 |
| Net interest income | 471 | 252 | 187 | 433 |
| Net fee income | 140 | 87 | 161 | 127 |
| Net trading income | 91 | 141 | 65 | 154 |
| Other income | 9 | 9 | 100 | 14 |
| Total income | 711 | 489 | 145 | 728 |
| Operating expenses | 339 | 256 | 132 | 386 |
| Profit before credit loss expenses | 372 | 233 | 160 | 342 |
| Credit loss expenses | 56 | 16 | 350 | 26 |
| Profit before tax | 316 | 217 | 146 | 316 |
| Loans and advances, end of period | 26,587 | 15,973 | 166 | 18,617 |
| Deposits, end of period | 15,783 | 11,360 | 139 | 12,594 |
| Risk-weighted items (avg.) | 23,179 | 15,620 | 148 | 20,153 |
| Allocated capital (avg.) | 1,275 | 1,015 | 126 | 1,310 |
| Profit before credit loss expenses as % p.a. of allocated capital | 43.8 | 34.4 | - | 26.1 |
| Pre-tax profit as % p.a. of allocated capital (ROE) | 37.2 | 32.1 | - | 24.1 |
| Cost/income ratio, % | 47.7 | 52.4 | - | 53.0 |
This interim report comments on the results of Sampo Pank, Danske Bank Group's banking activities in Estonia. Sampo Pank became part of the Danske Bank Group in February 2007.
The interim report covers the period from February 1 to September 30.
In addition to Sampo Pank, the Danske Bank Group operates under the names of Sampo Baltic Asset Management and Danske Markets in Estonia.
According to Aivar Rehe, chairman of the management board of Sampo Pank, the Bank achieved sound financial results in the eight-month period and maintained balanced asset growth.
“We have managed to extend volumes in all business areas,” Mr Rehe said. “In particular, we have been very successful at providing settlement services to corporate customers.
Despite the slowdown in economic growth, we have managed to maintain balanced growth. In the third quarter of the year, customer deposits saw a strong increase of 17%, or EEK2.2bn, and the loan portfolio grew by 11%, or EEK2.6bn.
The Group’s ratios and key figures remained strong: ROE for the eight-month period was 37.2%, and the Cost/income ratio was 47.7%.
To make cash services easily available to our retail customers, we will continue to expand our ATM network. At present, Sampo Pank has 59 ATMs but by the end of the year, our network will comprise 75 ATMs.”
Danske Bank Group’s quarterly report for the first nine months can be viewed at www.danskebank.com/reports.